In addition to Cogs, Cost Of Goods Sold may be short for other acronyms. People can also be cogs — they are the workers who, day in and day out, perform their duties seemingly with no end in sight. Feeling disheartened, they might say, “I’m just a cog in the system.” If you hear this, remind them of the true definition of the term cog — an instrumental part of the whole. For widget sellers, Cost of Goods Sold includes all expenses associated with the production of your widget.

• This term alludes to the role of the mechanical cog, one of the teeth on a wheel or gear that, by engaging other teeth, transmits or receives motion.
• Its end of year value is subtracted from its beginning of year value to find cost of goods sold.
• Depending on the COGS classification used, ending inventory costs will obviously differ.
• C.O.G.S. is likely a pseudo acronym chosen to fit the machine’s gear-like appearance.
• An income statement reports income for a certain accounting period, such as a year, quarter or month.
• EBITDA stands for Earnings Before Interest, Taxes, Depreciation and Amortization.

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And of course, once you have these all set, you can see your profit, margin and total cost at both a store level and an individual store level. Well, WooCommerce has actually built aCOGS extensionto allow you to enter your cost for each product you sell.